Taiwan high-speed posts first operating profit

THREE-and-a-half years after the island's 345km north-south high- speed line opened for business, Taiwan High Speed Rail Corporation (THSRC) has announced its first ever net operating profit. At its annual shareholders' meeting on June 23, THSRC reported operating revenues for 2009 of $NT 23.3 billion (SUS 728.8 million) and a net operating income of $NT 5.6 billion. Operating revenues rose by 1.2%, while operating costs, excluding amortisation and depreciation, fell by 7.5%.

The company says the improved figures are the result of increasing ridership, a reduction in interest rates brought about by renegotiation of its syndicated loans, and a change to depreciation based on transport volume. However, the cost of servicing accumulated debts of more than $NT 400 billion and depreciation meant THSRC made an overall loss of SNT 4.8 billion.

source: American Chronicle